All of the Following Statements Apply to a Purely Competitive

question 58

Multiple Choice

All of the following statements apply to a purely competitive market in the long run, except

• A) in the long run, all inputs are variable in quantity.
• B) firms can expand their plant capacities in the long run.
• C) total fixed costs remain constant even when output expands in the long run.
• D) firms may enter or leave the industry in the long run.

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Definitions:

Corporation

A legal entity that is separate and distinct from its owners, with rights and liabilities, capable of conducting business.

Promoter

An individual or company responsible for organizing and often financing concerts, plays, or other events.

Duty to Be Careful

The duty to be careful, often referred to as a duty of care, is a legal obligation imposed on individuals to act with the caution and attentiveness of a reasonable person to avoid causing harm to others.

Director

An individual appointed or elected to oversee the management and strategic direction of a company or organization.